Location: Dare County, NC | Metro: Dare County, NC
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $300,159 | 0.49% | F |
| 3BR | $1,880 | $361,752 | 0.52% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Wanchese, NC (ZIP 27981) might question whether the Fair Market Rent (FMR) of $1,420 for the metro area in fiscal year 2026 can cover the mortgage on a home priced at $368,005. The answer is not straightforward, as it depends on the interest rate and term length of the mortgage. However, using an average 30-year fixed-rate mortgage at today's rates, the monthly payment on a $368,005 home would be approximately $1,500-$1,600, which exceeds the FMR. This suggests that while the rent might cover part of the mortgage, additional income or equity might be necessary to fully manage the financial burden.
The second objection relates to the rental demand, which stands at 30.6% of the total housing stock. This percentage indicates a moderate level of demand, but it does not guarantee profitability. To assess the viability, one must consider the local job market and population trends. While the data does not provide a complete picture of these factors, it's worth noting that a 30.6% rental rate is not unusually high, suggesting that competition among landlords could be significant. Therefore, maintaining a competitive edge through property management and maintenance quality will be crucial.
The final concern is whether Housing Choice Vouchers will keep up with the market rents, currently at $1,073. According to recent HUD data, the average voucher amount in Wanchese has been increasing, but it remains below the market rent. As of the last report, the typical voucher covers around $750-$800 per month. This gap means that landlords accepting vouchers might need to subsidize the difference or find ways to increase voucher funding. It's also important to note that voucher recipients often have strict requirements for property conditions, which can affect maintenance costs.
In summary, while Wanchese offers opportunities for Section 8 investment, the data presents challenges in covering mortgage payments with FMR, sustaining demand at 30.6%, and matching market rents with voucher amounts. These factors should be carefully considered when evaluating the potential returns and risks of investing in this ZIP code.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.